Novelis invests $175m in Brazil expansion
Novelis Inc. has announced an investment of $175 million at its Pindamonhangaba plant, located in the Paraíba Valley between São Paulo and Rio de Janeiro, Brazil.
The expansion of the company’s flagship facility in South America will increase its rolluning production by an additional 100,000 tonnes and 60,000 tonnes of increased recycling. These expansions will bring total capacity of the Pindamonhangaba facility to approximately 680,000 tonnes per year of aluminum sheet and 450,000 tonnes annually of recycled metal.
The investment also includes a new water sourcing system and the purchase of approximately 90 acres of land for further potential growth.
“This investment in additional rolling and recycling capacity further strengthens our commitment to the South American region and better positions us to meet our customers’ needs,” said Steve Fisher, president and chief executive officer, Novelis Inc. “Our focus on establishing another reliable water source also helps us further deliver on our purpose of shaping a sustainable world together.”
Construction is due to begin in February 2019, and is expected to be complete in 2021. The project includes an increase in sheet ingot, hot mill and recycling production and complementary improvements, and will create more than 50 new jobs.
“Sustainability is the backbone of our business model and this expansion project is fully aligned with this vision,” said Tadeu Nardocci, senior vice president of Novelis Inc. and President of Novelis South America. “Pindamonhangaba plant is already the largest center of rolled products and aluminum recycling in South America. With this expansion, Novelis solidifies its leadership position and creates new opportunities to offer innovative solutions to its customers.”
Novelis will have the support of Investe SP, a São Paulo Agency for the Promotion of Investments and Competitiveness.
“It’s very important for the state of São Paulo to contribute to this high value-added project. São Paulo needs initiatives like this that promote the economic, social and environmental development of the state. Investe’s role is to help companies to install or develop their businesses and in doing so, improve economic potential, generate jobs, income and increase the production supply chain and logistics involved,” said Sérgio Costa, the agency’s director.